(800) 956-3728 California Landlord Insurance
Protection for California property owners
Landlord Insurance in California
Owning rental property in California can be a great way to generate extra income, but it also comes with its own set of risks. Mercury provides comprehensive landlord insurance coverage tailored for California property owners so you can safeguard your rental property and finances. Whether you rent out a single unit or multiple properties, we’ve got you covered with reliable protection at an affordable price.
What Does Landlord Insurance Cover in California?
Landlord insurance is designed specifically for property owners who rent out their homes, condos, or apartments. It covers risks that standard homeowners insurance policies may not, focusing on protecting the dwelling, your liability as a landlord, and potential loss of rental income. Here’s a closer look at the key coverage areas:
- Property damage: This covers your rental property against damage caused by fire, storms, or other covered risks. If something happens to your building, landlord insurance helps cover the costs of repairs or rebuilding.
- Liability protection: As a landlord, you’re responsible for keeping your property safe for tenants and visitors. Landlord insurance can cover legal fees and medical expenses if someone gets injured on your property, and you’re held liable.
- Loss of rental income: If your property becomes uninhabitable due to a covered peril, landlord insurance can reimburse you for lost rental income during the repairs.
Optional Add-Ons for California Landlord Insurance
We understand that every landlord’s needs are unique, which is why we offer several optional add-ons to customize your policy, including:
- Short-term home-sharing endorsement: If you rent out your property through platforms like Airbnb or VRBO, this endorsement extends your coverage to short-term rentals, protecting you from risks associated with these arrangements.
- Personal property coverage: While landlord insurance typically doesn’t cover your personal belongings within the rental property, this add-on protects essential items like appliances or furniture that you provide for your tenants’ use.
- Service line coverage: This add-on covers repairs for service lines such as water, gas, or electricity on your rental property, helping you avoid costly out-of-pocket expenses for damaged or broken lines.
- Home systems protection: This coverage protects a wide range of critical systems within your rental property from unexpected breakdowns or malfunctions, from heating and cooling systems to essential appliances and electronics.
Factors Affecting the Cost of Landlord Insurance in California
Several factors can influence how much you’ll pay for landlord insurance in California, including:
- Location: Properties located in high-crime neighborhoods or areas prone to natural disasters, such as wildfires or earthquakes, may come with higher insurance premiums.
- Property type: The age, size, and construction of your rental property can all affect your rates. For example, older properties may have higher premiums due to the increased likelihood of maintenance issues.
- Coverage limits: The amount of coverage you select, including any add-ons, will directly influence your premium. Opting for higher coverage limits means better protection, but it may increase the cost.
- Claims history: Your insurance history and the number of claims you’ve filed can also impact your rate. Fewer claims typically lead to lower premiums.
How to Get Landlord Insurance in California
Getting started with Mercury is easy. Simply reach out to one of our California agents, start your quote online, or call (877) 206-8702. With a quick consultation, we’ll help you find the right coverage for your rental property at a price that fits your budget.
Legal Obligations for Landlords in California
As a landlord in California, it’s important to understand the legal responsibilities that come with renting out your property. Here are a few key obligations to keep in mind:
Rent Control
California’s Tenant Protection Act of 2019 puts limits on how much rent can be increased each year. For most properties, rent hikes are capped at 5% plus inflation, or 10% of the lowest rent from the previous year — whichever is lower. You can only raise rent once a year, and some local areas may have even stricter rules, so check with your city or county for specific regulations.
Security Deposits
For most rental units, landlords can charge up to one month’s rent as a deposit for both furnished and unfurnished properties. However, small landlords (those owning no more than two properties with four or fewer units) can charge up to two months’ rent.
Repairs and Habitability
As a landlord, you’re required to maintain a habitable property. This means you must address essential repairs, like fixing heating issues or plumbing problems, in a timely manner. If you fail to make necessary repairs, tenants have the right to withhold rent or use the “repair and deduct” remedy, where they fix the issue and subtract the cost from their rent.
Property Access
If you need to enter your rental property for inspections or repairs, California law requires you to provide tenants with at least 24 hours notice in most cases. For move-out inspections, 48 hours notice is usually required. In emergencies, you can enter without notice to address urgent issues.
Evictions
If a tenant isn’t paying rent or violates the lease, California law outlines a specific process you must follow for eviction. You’re required to give tenants a three-day notice to pay or quit (move out) before starting eviction proceedings. For lease violations, you’ll need to issue a three-day notice to either fix the problem or move out. In more serious cases, like illegal activity or unauthorized subletting, you can issue an unconditional quit notice, requiring the tenant to leave immediately without an opportunity to correct the issue.
These are just some of the legal obligations you’ll need to meet as a landlord in California. Visit Nolo for more information.
How Much is Landlord Insurance in California?
The cost varies depending on the factors mentioned above. However, according to Policygenius, the average cost of landlord insurance in California is about $1,728 per year.
For a more personalized estimate, you can easily get a quote from Mercury by visiting our California Insurance Agents page, starting an online quote, or calling us at (877) 206-8702.
California Landlord Insurance FAQs
Are landlords required to have insurance in California?
Landlord insurance is not legally required in California, but it’s highly recommended to protect both your property and your financial well-being. Without landlord insurance, you could be left covering costly repairs, legal fees, or loss of rental income out of pocket if something goes wrong.
Do I need landlord insurance if I only rent out one unit in California?
California doesn’t require landlord insurance if you only rent out one unit, but it’s still a wise choice to have it. Regular homeowners insurance typically won’t cover risks associated with renting, such as property damage caused by tenants or loss of rental income if the unit becomes uninhabitable due to a covered event.
Is earthquake insurance included in standard landlord policies in California?
No. You’ll need a separate earthquake insurance policy.
Does landlord insurance cover tenant damage to the property?
Landlord insurance generally covers accidental damage to the property caused by tenants, such as fire or water damage, but it typically doesn’t cover intentional damage or normal wear and tear. If a tenant deliberately causes damage, you would likely need to rely on their security deposit or pursue legal action to cover the costs of repairs.
Mercury Insurance Coverage in California
Beyond landlord insurance, Mercury offers a full range of coverage options for Californians, including: